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Insurance broking basics

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Finding the right insurance cover can be confusing and time-consuming due to the increasing number of insurers, policies, offers and options to choose from. But with the help of insurance brokers, this struggle can be avoided.

As specialists of insurance protection, insurance brokers have an in-depth working knowledge of the insurance market. They have access to a variety of insurance products and have the ability to deal with a range of insurance companies directly.

By applying their knowledge and expertise in the field, insurance brokers can help clients identify the types of risks and exposures they face, and determine what needs insuring and what can be managed in other ways.

According to InsuranceHotline.com, a public company based in Canada that offers free online insurance rate comparison service, having an insurance broker means that you have a professional on your side who will help you choose the best policy.




“They offer professional and unbiased advice, ethical conduct, and full disclosure of all the information you need to make an informed decision,” InsuranceHotline.com said in its Web site.

The firm also noted that insurance brokers are experienced and skilled professionals in dealing with the claims process from many different insurance companies.

“They can talk you through each stage while giving you personalized advice and excellent customer service. Brokers will help protect your privacy and advocate to the insurance companies on your behalf,” InsuranceHotline.com said.

Moreover, brokers are committed to lifelong learning. Insurance brokers ensure that they are informed on the latest changes and adjustments to insurance policies and legislation to give their clients the best options available when purchasing any insurance policy.

There are two types of brokers that specialize in different covers and policies: retail and commercial.

Professional brokers who act on behalf of companies and individuals are called retail insurance brokers. They offer policies such as health, travel, home, and auto insurance, along with private and public liability and employer’s liability plans.

On the other hand, commercial insurance brokers specialize in industries such as gas, oil, marine, and aviation, and offer complex and high-value policies.

Aside from helping clients make a well-informed decision and finding the best deal, insurance brokers can help in many ways. Here are a few worth noting:

Using an insurance broker saves time and money. With their established relationship with many insurance carriers, insurance brokers can easily compare rates based on the personal information of the client in a very short period of time. There is also an assurance that you will get the most appropriate level of cover for the price, so you won’t end up with cheap insurance that doesn’t adequately protect you. In addition, some brokers have access to exclusive deals or aspects of cover that insurance companies might not give to you if you approach them directly.

Having an insurance broker gives you peace of mind. Since brokers are not tied to a specific company or a specific company’s products, you have the assurance that you will get the right insurance coverage that meets your needs. Insurance brokers can educate you about existing insurance that you may not know but perfectly suit your requirements. 

Insurance brokers can make complex things simple. The field of insurance is a jargon-filled industry; it has legal terminologies and acronyms that can be difficult to understand. Brokers can explain things clearly and make the complex simple. They are responsible for ensuring you have a clear understanding of the coverage you are going to avail.

Your privacy is protected. Insurance brokers collect your personal information to determine the best insurance for you, your family, assets or business. This is not a problem since brokers are required by the Code of Ethics to maintain your privacy and keep all client discussions and information completely confidential.

Insurance brokers can guide you through the claims process. They can make the whole experience less stressful, especially if you’re also dealing with other knock-on effects of the incident that brought about the claim.

Insurance brokers work with their clients on a long-term basis. Unlike dealing directly with insurers, having an insurance broker would prevent you from talking to one person to the next. Through the years, insurance brokers will know your history and will understand your every need to find the best policies. — Mark Louis F. Ferrolino